Marketing Segmentation Impact on Sales
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This report examines the impact of marketing segmentation on sales performance in the beverage industry, focusing on Starbucks Coffee. It analyzes the key benefits of segmentation, its effects on Starbucks' sales, and strategies to enhance sales performance. The report uses a qualitative research approach, including a questionnaire survey, to gather insights from respondents.
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Table of Contents
TITLE: “The potential effects of marketing segmentation on sales performance in the beverage
industry. A study on Starbucks Coffee”..........................................................................................1
INTRODUCTION...........................................................................................................................1
Overview of research..................................................................................................................1
Background of research...............................................................................................................1
Significance of research..............................................................................................................2
Research Aim..............................................................................................................................2
Research Objectives....................................................................................................................2
Research Questions.....................................................................................................................2
LITERATURE REVIEW................................................................................................................2
Key benefit of marketing segmentation......................................................................................3
Impacts of marketing segmentation on sales performance of company.....................................4
Ways that can used by company to enhance sales performance.................................................5
RESEARCH METHODOLOGY.....................................................................................................6
Type of investigation...................................................................................................................6
Research Philosophy...................................................................................................................7
Research Approach.....................................................................................................................7
Research Strategy........................................................................................................................8
Ethical consideration...................................................................................................................8
DATA ANALYSIS AND PRESENTATION...............................................................................12
CONCLUSION..............................................................................................................................18
RECOMMENDATION.................................................................................................................19
REFERENCES..............................................................................................................................20
TITLE: “The potential effects of marketing segmentation on sales performance in the beverage
industry. A study on Starbucks Coffee”..........................................................................................1
INTRODUCTION...........................................................................................................................1
Overview of research..................................................................................................................1
Background of research...............................................................................................................1
Significance of research..............................................................................................................2
Research Aim..............................................................................................................................2
Research Objectives....................................................................................................................2
Research Questions.....................................................................................................................2
LITERATURE REVIEW................................................................................................................2
Key benefit of marketing segmentation......................................................................................3
Impacts of marketing segmentation on sales performance of company.....................................4
Ways that can used by company to enhance sales performance.................................................5
RESEARCH METHODOLOGY.....................................................................................................6
Type of investigation...................................................................................................................6
Research Philosophy...................................................................................................................7
Research Approach.....................................................................................................................7
Research Strategy........................................................................................................................8
Ethical consideration...................................................................................................................8
DATA ANALYSIS AND PRESENTATION...............................................................................12
CONCLUSION..............................................................................................................................18
RECOMMENDATION.................................................................................................................19
REFERENCES..............................................................................................................................20
TITLE: “The potential effects of marketing segmentation on sales
performance in the beverage industry. A study on Starbucks Coffee”.
INTRODUCTION
Overview of research
Marketing is an effective concept which are related to different concepts and philosophies
that includes selling concept, production concepts and product concept. In this, consumers are
one of the most essential thing at the time of operating and regulating business operations. One
of the important strategies is market segmentation which is customer oriented philosophy where
no firm can produce and satisfy their buyers needs and wants effectively. Sales performance use
raw data which is concern about the number of customers a sales related to the number of actual
sales. This will show the proportion of customer loyalty to the business and a specific worker.
Along with this, it will enhancing sales performance which can automatically increasing the
number of desired buyers (Bahadir, Bharadwaj and Srivastava, 2015). Marketing effect and
segmentation is always a customers oriented philosophy, this is consistently with the marketing
concept. Market segmentation is the procedure of dividing market into different categories and
they are select desired customers who are able to purchase their goods and services. In addition
to this, it will describe research aims and objectives which can be helpful in explaining and
describing regarding research topic. Literature review explain different authors and scholars
views or reviews regarding investigation theme. This will help in analysing various respondents
view points and opinions regarding research topic.
Background of research
Starbucks is an American coffee company and large coffee house chain, Starbucks was
established in Seattle, Washington in the year of 1971. The company operated and regulated in
around 30,000 locations in all across the world. Starbucks locations serve and deliver hot an
drinks, whole bean coffee, micro ground instant coffee which is known as VIA, espresso, caffe
latte, full and loose leaf teas including Teavana tea products. Since 2000s, the third movement
coffee maker have targeted quality minded coffee drinkers which hand made and it is based on
lighter roasts (Bezawada and Pauwels, 2013). In the end of the year, Starbucks increasing the
number of stored to 17 and furthered its location span by entering Chicago and Vancouver. In
1
performance in the beverage industry. A study on Starbucks Coffee”.
INTRODUCTION
Overview of research
Marketing is an effective concept which are related to different concepts and philosophies
that includes selling concept, production concepts and product concept. In this, consumers are
one of the most essential thing at the time of operating and regulating business operations. One
of the important strategies is market segmentation which is customer oriented philosophy where
no firm can produce and satisfy their buyers needs and wants effectively. Sales performance use
raw data which is concern about the number of customers a sales related to the number of actual
sales. This will show the proportion of customer loyalty to the business and a specific worker.
Along with this, it will enhancing sales performance which can automatically increasing the
number of desired buyers (Bahadir, Bharadwaj and Srivastava, 2015). Marketing effect and
segmentation is always a customers oriented philosophy, this is consistently with the marketing
concept. Market segmentation is the procedure of dividing market into different categories and
they are select desired customers who are able to purchase their goods and services. In addition
to this, it will describe research aims and objectives which can be helpful in explaining and
describing regarding research topic. Literature review explain different authors and scholars
views or reviews regarding investigation theme. This will help in analysing various respondents
view points and opinions regarding research topic.
Background of research
Starbucks is an American coffee company and large coffee house chain, Starbucks was
established in Seattle, Washington in the year of 1971. The company operated and regulated in
around 30,000 locations in all across the world. Starbucks locations serve and deliver hot an
drinks, whole bean coffee, micro ground instant coffee which is known as VIA, espresso, caffe
latte, full and loose leaf teas including Teavana tea products. Since 2000s, the third movement
coffee maker have targeted quality minded coffee drinkers which hand made and it is based on
lighter roasts (Bezawada and Pauwels, 2013). In the end of the year, Starbucks increasing the
number of stored to 17 and furthered its location span by entering Chicago and Vancouver. In
1
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current time period, Starbucks operate and regulate international stores which is around 5113 and
11567 in the United states.
Significance of research
The importance of this research is to analyse the impact of market segmentation on sales
performance in the beverage industry. Starbucks used market segmentation method which assist
in dividing targeted customers into different categories who are capable for purchasing their
goods and services (Chang, Wong and Fang, 2014). This study will be great benefit to consumer
and individuals in their purchasing pattern. Market segmentation help company in gaining a
competitive advantages in the whole market place by analysing different customers groups and
targetting particular goods to meet with their demands. It enables a business to provide
customers needs and wants in better manner regarding company products and items.
Research Aim
Aim: “To analyse the potential effects of marketing segmentation on sales performance in the
beverage industry. A study on Starbucks Coffee”.
Research Objectives
Objectives:
To analyse the key benefit of marketing segmentation.
To evaluate the major impacts of marketing segmentation on sales performance of
company.
To identify various ways that can used by company to enhance sales performance.
Research Questions
Questions:
What are the key benefit of marketing segmentation ?
What are the major impacts of marketing segmentation on sales performance of
company?
What are the ways that can used by company to enhance sales performance ?
LITERATURE REVIEW
A literature review is the type of review article. A literature review is scholarly paper
which includes current knowledge involves essential analysis and findings as well as theoretical
contributions to specific topic. Literature review are secondary methods and sources and it do not
2
11567 in the United states.
Significance of research
The importance of this research is to analyse the impact of market segmentation on sales
performance in the beverage industry. Starbucks used market segmentation method which assist
in dividing targeted customers into different categories who are capable for purchasing their
goods and services (Chang, Wong and Fang, 2014). This study will be great benefit to consumer
and individuals in their purchasing pattern. Market segmentation help company in gaining a
competitive advantages in the whole market place by analysing different customers groups and
targetting particular goods to meet with their demands. It enables a business to provide
customers needs and wants in better manner regarding company products and items.
Research Aim
Aim: “To analyse the potential effects of marketing segmentation on sales performance in the
beverage industry. A study on Starbucks Coffee”.
Research Objectives
Objectives:
To analyse the key benefit of marketing segmentation.
To evaluate the major impacts of marketing segmentation on sales performance of
company.
To identify various ways that can used by company to enhance sales performance.
Research Questions
Questions:
What are the key benefit of marketing segmentation ?
What are the major impacts of marketing segmentation on sales performance of
company?
What are the ways that can used by company to enhance sales performance ?
LITERATURE REVIEW
A literature review is the type of review article. A literature review is scholarly paper
which includes current knowledge involves essential analysis and findings as well as theoretical
contributions to specific topic. Literature review are secondary methods and sources and it do not
2
report new and original experimental work. It is the basis of research in every academic field. A
narrow scope literature review include as a part of peer reviewed journal article which present
new investigation, serving to situate current study within body of accurate literature and this is
provide in the context of reader (Chari and et. al., 2014). A literature review is the search and
evaluation of available literature in the given subject and topic area. It is the simple summary of
the sources but it is usually has an organisational pattern and integrate with both summary and
synthesis. This is provide a new interpretation of old material and it will combine with old
interpretation effectively. The main focus of an academic research paper is to develop and
formulate a new argument and an investigation paper is likely to include literature review as one
part of the research.
Key benefit of marketing segmentation
According to the Germann, Lilien and Rangaswamy, (2013) Customers are the king of
market and to identify the real kings from it, the necessary task is to get an appropriate segment
to approach. Market has diverse in various proportion, as the taste and preference of consumer,
loyalty towards a product, convenience good, price sensitive consumers and many more. These
forces are making a tough competition in market to handle a situation or to attract a particular
market. To overcome from all these situation, market has come-up with a game plan to ahead of
the pack that is called market segmentation. Market segmentation is a process by which an
organization divides its whole consumers into a smaller group by finding an appropriate trait
based on age of an individual, income of a person or personality traits to offer sale. It clarifies the
exact segment on which a company need to target, it takes place by finding the nature of product
which has launched in market to offer. Starbucks adopt different market segment such as mono
segment positioning, adaptive positioning, and sandy positioning.
Market segmentation can also be done by different aspect to get an exact customers for
its product. It help in growth of a particular sector and establish a market by its own. It boost-up
a business in a way to get a stability in market and starts building a brand into it as to offer
product to them. It comprises a big market into different sectors with similar traits which is based
on the following:-
Demographic segmentation:- Dividing a market on the basis of different traits such as
age of person, education of a consumer, gender of people, occupation, nationality and many
more. It clarifies the market in a particular trait to whom a product should offer. Starbucks
3
narrow scope literature review include as a part of peer reviewed journal article which present
new investigation, serving to situate current study within body of accurate literature and this is
provide in the context of reader (Chari and et. al., 2014). A literature review is the search and
evaluation of available literature in the given subject and topic area. It is the simple summary of
the sources but it is usually has an organisational pattern and integrate with both summary and
synthesis. This is provide a new interpretation of old material and it will combine with old
interpretation effectively. The main focus of an academic research paper is to develop and
formulate a new argument and an investigation paper is likely to include literature review as one
part of the research.
Key benefit of marketing segmentation
According to the Germann, Lilien and Rangaswamy, (2013) Customers are the king of
market and to identify the real kings from it, the necessary task is to get an appropriate segment
to approach. Market has diverse in various proportion, as the taste and preference of consumer,
loyalty towards a product, convenience good, price sensitive consumers and many more. These
forces are making a tough competition in market to handle a situation or to attract a particular
market. To overcome from all these situation, market has come-up with a game plan to ahead of
the pack that is called market segmentation. Market segmentation is a process by which an
organization divides its whole consumers into a smaller group by finding an appropriate trait
based on age of an individual, income of a person or personality traits to offer sale. It clarifies the
exact segment on which a company need to target, it takes place by finding the nature of product
which has launched in market to offer. Starbucks adopt different market segment such as mono
segment positioning, adaptive positioning, and sandy positioning.
Market segmentation can also be done by different aspect to get an exact customers for
its product. It help in growth of a particular sector and establish a market by its own. It boost-up
a business in a way to get a stability in market and starts building a brand into it as to offer
product to them. It comprises a big market into different sectors with similar traits which is based
on the following:-
Demographic segmentation:- Dividing a market on the basis of different traits such as
age of person, education of a consumer, gender of people, occupation, nationality and many
more. It clarifies the market in a particular trait to whom a product should offer. Starbucks
3
targets males & females, which has different stages such as bachelors, newly married couples
young etc.
Geographic segmentation:- It is the easiest segment to get a clarification on the basis of
geographical boundaries, customers are to be targeted on the basis of its geographical and
maintain a stability in a particular area (Guenzi, Sajtos and Troilo, 2016). It showcases all needs
of a particular area and different interest which develops a preference to offer a product or
services and to work on marketing strategy at identifying segment. Starbucks regions are US,
Canada, Latin America, etc, with an age between 22-60.
Firmographic segmentation:- It has a similarity with demographic segment as
demographic work on an individual while talking about firmographic, it looks toward an
organization. This segment covers many aspects such as size of a company, number of
employees working on it and differentiate in addressing a business of small size. Starbucks focus
on new corporate industry, which establish to boost-up a new market.
Behavioural segmentation:- It focuses on particular aspect related to an individual
behaviour and the taste, preferences by which a consumer design its decision-making pattern
such as lifestyle of a consumer, usage, etc. Starbucks examines hard core loyal customer who
prefer to enjoying quality of coffee with an amazing ambience (Kartawinata and Wardhana,
2013).
Psycho-graphic segmentation:- Consumers are divided by its lifestyle, traits related to
personality, values of a particular person, opinions and interests of consumers. Starbucks focus
on a particular social class which involves all middle and upper class people. Mainstreamer,
Aspirer, succeeded and explorer are the target market in this case.
Impacts of marketing segmentation on sales performance of company
According to the Lin, Tan and Geng, (2013), every company has an aim to get maximum
profit from the market. Earning a profit is not an easy task, to get ahead of the pack. It takes a lot
of management work which targets a particular customer while performing its duty of consumer
satisfaction. For any business, it is important to focus on customers and customer relationship
management, which become a particular aim of company as to get more market share.
From every work starts from marketing by taking initiative of digital marketing and
keeping an eye on every aspect which help in introducing loyalty program. Updating digital
payment platform by mobile and cards which design a plan to cover the Asia pacific region. It
4
young etc.
Geographic segmentation:- It is the easiest segment to get a clarification on the basis of
geographical boundaries, customers are to be targeted on the basis of its geographical and
maintain a stability in a particular area (Guenzi, Sajtos and Troilo, 2016). It showcases all needs
of a particular area and different interest which develops a preference to offer a product or
services and to work on marketing strategy at identifying segment. Starbucks regions are US,
Canada, Latin America, etc, with an age between 22-60.
Firmographic segmentation:- It has a similarity with demographic segment as
demographic work on an individual while talking about firmographic, it looks toward an
organization. This segment covers many aspects such as size of a company, number of
employees working on it and differentiate in addressing a business of small size. Starbucks focus
on new corporate industry, which establish to boost-up a new market.
Behavioural segmentation:- It focuses on particular aspect related to an individual
behaviour and the taste, preferences by which a consumer design its decision-making pattern
such as lifestyle of a consumer, usage, etc. Starbucks examines hard core loyal customer who
prefer to enjoying quality of coffee with an amazing ambience (Kartawinata and Wardhana,
2013).
Psycho-graphic segmentation:- Consumers are divided by its lifestyle, traits related to
personality, values of a particular person, opinions and interests of consumers. Starbucks focus
on a particular social class which involves all middle and upper class people. Mainstreamer,
Aspirer, succeeded and explorer are the target market in this case.
Impacts of marketing segmentation on sales performance of company
According to the Lin, Tan and Geng, (2013), every company has an aim to get maximum
profit from the market. Earning a profit is not an easy task, to get ahead of the pack. It takes a lot
of management work which targets a particular customer while performing its duty of consumer
satisfaction. For any business, it is important to focus on customers and customer relationship
management, which become a particular aim of company as to get more market share.
From every work starts from marketing by taking initiative of digital marketing and
keeping an eye on every aspect which help in introducing loyalty program. Updating digital
payment platform by mobile and cards which design a plan to cover the Asia pacific region. It
4
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attracts thousand of targeted customers and starts framing a stability into a market. Starbucks
gets a game plan to kill the future barriers and laid down the footprints to its growth in future.
Starbucks is taking place in market by its marketing strategies and maintain a stability by taste
and preference. Elevation of coffee experience, which focuses on customer's preferences and put
all its effort in maintaining a stability in consumer's mind. Increase in demand by maintaining
stability in preferences gives a motivation to Starbucks by which it expanded its store portfolio
and focus on offering more quality with innovative discounts to attract more customers and
maximize its profit.
Driving at home coffee share and occasion is one of the best impact which add-up in the
success story of Starbucks (Marandu, 2015). As increase in demand in market directly focusing
on improving services of a company which develop a new market by driving the demand of
coffee for at-home.
Ways that can used by company to enhance sales performance
According to the Möller and Parvinen, (2015), achieving success is much more important
for a business as capital invested in a particular field and building brand from it, is a vital part of
a business. Branding creates a value and focus on maximizing profit by increasing its customer's
demand. It brings trust on merchandise and maintain a stability of a particular consumer on a
product. Building brand needs many strategy which examines by different institutions and gives
a very distinctive root to get a success by it. Starbucks which has planned a game plan to
maintain a market.
Starbucks focus on building brand in market which help in long term stability and frames
a pipeline profit model. It creates a market for the need of consumers and increases its profit
maximization by different ways which is as follows:
Determine brand's target audience- Starbucks started finding its audience who
supposed to drink coffee daily and from a market by its strategy (Phillips and et. al., 2015). It is a
beginning of framing a name into a brand by focusing on a particular market or a targeted
audience. The focus in beginning is to get a specific audience for products and establish a market
for it.
Establish a brand mission statement- Creating a market needs to search a proper brand
mission as building brand needs to focus on its clearest expression. Before focusing on creating a
brand a company should understand what values need to offer to its customers. Starbucks, which
5
gets a game plan to kill the future barriers and laid down the footprints to its growth in future.
Starbucks is taking place in market by its marketing strategies and maintain a stability by taste
and preference. Elevation of coffee experience, which focuses on customer's preferences and put
all its effort in maintaining a stability in consumer's mind. Increase in demand by maintaining
stability in preferences gives a motivation to Starbucks by which it expanded its store portfolio
and focus on offering more quality with innovative discounts to attract more customers and
maximize its profit.
Driving at home coffee share and occasion is one of the best impact which add-up in the
success story of Starbucks (Marandu, 2015). As increase in demand in market directly focusing
on improving services of a company which develop a new market by driving the demand of
coffee for at-home.
Ways that can used by company to enhance sales performance
According to the Möller and Parvinen, (2015), achieving success is much more important
for a business as capital invested in a particular field and building brand from it, is a vital part of
a business. Branding creates a value and focus on maximizing profit by increasing its customer's
demand. It brings trust on merchandise and maintain a stability of a particular consumer on a
product. Building brand needs many strategy which examines by different institutions and gives
a very distinctive root to get a success by it. Starbucks which has planned a game plan to
maintain a market.
Starbucks focus on building brand in market which help in long term stability and frames
a pipeline profit model. It creates a market for the need of consumers and increases its profit
maximization by different ways which is as follows:
Determine brand's target audience- Starbucks started finding its audience who
supposed to drink coffee daily and from a market by its strategy (Phillips and et. al., 2015). It is a
beginning of framing a name into a brand by focusing on a particular market or a targeted
audience. The focus in beginning is to get a specific audience for products and establish a market
for it.
Establish a brand mission statement- Creating a market needs to search a proper brand
mission as building brand needs to focus on its clearest expression. Before focusing on creating a
brand a company should understand what values need to offer to its customers. Starbucks, which
5
focus on its quality and direct touch, the taste of a consumer, which maintain a stability to build a
trust in market.
Outline key qualities and benefits brand offers- While framing a brand, quality plays a
vital role. Adopting an approach related to offer better quality in market is much more important
as it defines the standard in market and kill its competitors by offering a perfect taste which
market demands.
Let make brand personality shine:- An awareness which influence a market about a
particular brand and gives a Brand personality spectrum. Where a product stands in market and
showcase a reality to improve in market.
RESEARCH METHODOLOGY
Research methodology refers to particular method or techniques which can be conduct in
order to analysis, selecting, examining and processing all information or data which are collect in
respect of particular topic (Rubera and Droge, 2013). In this of research is conduct in order to
carry out evaluation and analysis working procedure in appropriate and effective manner. By
conducting this researcher able to use their skills and ability in effective and appropriate manner.
Along with this they also able to collect information and data in appropriate manner in order to
conduct best research on particular topic.
Type of investigation
Investigation refer to process by which a research conduct analysis and evaluation of data
which they collected. It can be done by basically two methods qualitative as well as quantitative.
In qualitative method researcher collect relevant information and data by focussing on
maintaining quality as well as evaluating customers view point on products and services (Sabnis
and et. al., 2013). On other hand quantitative method is used by a researcher when they have to
collect quantitative data that include number, facts and figures. For conducting respective
research researcher use qualitative research method for collecting appropriate and effective data
or information.
Data collection
Data collection is refers to method by which a research able to gather and collect
essential data and information which help researcher in completing research in effective and
appropriate manner. There are mainly two method of data collection which are explained below:-
6
trust in market.
Outline key qualities and benefits brand offers- While framing a brand, quality plays a
vital role. Adopting an approach related to offer better quality in market is much more important
as it defines the standard in market and kill its competitors by offering a perfect taste which
market demands.
Let make brand personality shine:- An awareness which influence a market about a
particular brand and gives a Brand personality spectrum. Where a product stands in market and
showcase a reality to improve in market.
RESEARCH METHODOLOGY
Research methodology refers to particular method or techniques which can be conduct in
order to analysis, selecting, examining and processing all information or data which are collect in
respect of particular topic (Rubera and Droge, 2013). In this of research is conduct in order to
carry out evaluation and analysis working procedure in appropriate and effective manner. By
conducting this researcher able to use their skills and ability in effective and appropriate manner.
Along with this they also able to collect information and data in appropriate manner in order to
conduct best research on particular topic.
Type of investigation
Investigation refer to process by which a research conduct analysis and evaluation of data
which they collected. It can be done by basically two methods qualitative as well as quantitative.
In qualitative method researcher collect relevant information and data by focussing on
maintaining quality as well as evaluating customers view point on products and services (Sabnis
and et. al., 2013). On other hand quantitative method is used by a researcher when they have to
collect quantitative data that include number, facts and figures. For conducting respective
research researcher use qualitative research method for collecting appropriate and effective data
or information.
Data collection
Data collection is refers to method by which a research able to gather and collect
essential data and information which help researcher in completing research in effective and
appropriate manner. There are mainly two method of data collection which are explained below:-
6
Primary method – It refers methods in which data or information are collected or gather
by a researcher on the basis of real and specific time or work, it is basically first time
data. It can be done by various methods or techniques such as survey, focused group,
interview and questionnaire.
Secondary method – It refers to methods in which data or information are collected from
any published or unpublished sources (Seringhaus, 2015). Methods through which
researcher collect data through secondary methods are internet, books and many more.
For conducting respective project in appropriate and effective manner researcher use
primary and secondary data for collecting data as well as information in effective manner.
Research Philosophy
It is also an important part of research that determine the way in which data related to a
phenomenon must be collected, analysed and used. It is very broad topic because all the
necessary details of the research will be discussed in research philosophies. Moreover, this is a
set of phenomenon with the help of which researcher aim at understanding perspective of
participants to derive valid outcomes. There are mainly two types of research philosophies which
are positivism and interpretivism. In addition to this, philosophy is obsessed with the views about
how the world works (Sharma, Davcik and Pillai, 2016). Researcher in the present research used
interpretivism research philosophy which involves scholar to present the factors of the study,
hence, interpretivism interprets interest of human in the study.
Research Approach
Research appropriate refers to technique or plan which is adopted by a researcher in order
to collect data in appropriate manner then conduct interpretation and analysis of it in proper way
in order to identify effective data and information (Terho and et. al., 2015). There are mainly
two type of appropriate approaches which is adopted by researcher in order to conduct their
research in proper and effective manner. By conducting these method one can analysis whole
area in appropriate manner. Inductive and deductive are the two approach which can be used by
a researcher. For respective research research use deductive approach, in which researcher
collect and analysis current number and statical data by conducting observation and analysis. By
this they able to get appropriate and authenticate data in proper manner. Apart from this
inductive approach is a method which include different type of theories as well as model
thorough which researcher able to gain appropriate and effective data and information. Along
7
by a researcher on the basis of real and specific time or work, it is basically first time
data. It can be done by various methods or techniques such as survey, focused group,
interview and questionnaire.
Secondary method – It refers to methods in which data or information are collected from
any published or unpublished sources (Seringhaus, 2015). Methods through which
researcher collect data through secondary methods are internet, books and many more.
For conducting respective project in appropriate and effective manner researcher use
primary and secondary data for collecting data as well as information in effective manner.
Research Philosophy
It is also an important part of research that determine the way in which data related to a
phenomenon must be collected, analysed and used. It is very broad topic because all the
necessary details of the research will be discussed in research philosophies. Moreover, this is a
set of phenomenon with the help of which researcher aim at understanding perspective of
participants to derive valid outcomes. There are mainly two types of research philosophies which
are positivism and interpretivism. In addition to this, philosophy is obsessed with the views about
how the world works (Sharma, Davcik and Pillai, 2016). Researcher in the present research used
interpretivism research philosophy which involves scholar to present the factors of the study,
hence, interpretivism interprets interest of human in the study.
Research Approach
Research appropriate refers to technique or plan which is adopted by a researcher in order
to collect data in appropriate manner then conduct interpretation and analysis of it in proper way
in order to identify effective data and information (Terho and et. al., 2015). There are mainly
two type of appropriate approaches which is adopted by researcher in order to conduct their
research in proper and effective manner. By conducting these method one can analysis whole
area in appropriate manner. Inductive and deductive are the two approach which can be used by
a researcher. For respective research research use deductive approach, in which researcher
collect and analysis current number and statical data by conducting observation and analysis. By
this they able to get appropriate and authenticate data in proper manner. Apart from this
inductive approach is a method which include different type of theories as well as model
thorough which researcher able to gain appropriate and effective data and information. Along
7
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with this they also able to gather relevant facts, information and figures in better manner for
completing evaluation.
Research Strategy
It refers to a planned step by step action which provide path to researcher's idea and
thorough by which they able to conduct research in effective manner. It is essential for a
researcher because by it they able to identify issues and problems in effective manner and then
develop plans accordingly. Along with this they also able to develop and identify appropriate
concept for research, method to conduct it, aim and objective, techniques and many more. It is
also help in taking and collecting essential view and suggestions of respondents in respect of
particular innovative goods and services (Verhoef, Kannan and Inman,, 2015). There are various
research strategies which can be used by researcher in order to accomplishing and attaining
objective of particular project in effective and efficient manner. Such as case study,
questionnaire, survey and many more which can be use a researcher. For conduct this research
on the topic of “the potential effects of marketing segmentation on sales performance in the
beverage industry”, researcher use questionnaire method. Which is consider a research
instrument which include sets of questions in order to gather or collect information in effective
and efficient manner. In this method researcher develop questionnaire which is related to its
topics in order to collect appropriate information in effective manner. Then they give it to
respondent who answer all the questions in proper manner,after this researcher will evaluate and
analysis answer in respect to gain appropriate data or information.
Ethical consideration
The ethical consideration refers to a technique which is conducted by an organisation in
order to analysis as well as diagnose each and every area. By this manager of a company able to
evaluate and analysis appropriate norms and rules according to situation (Wedel and Kannan,
2016). It is one of the essential and importance section in respect of research this is so because
many professionals agencies and associates adopt various code as well as policies which create
framework of ethical behaviour and guidebook for researcher. It will various aspects such as
honesty, objectivity, social responsibilities, confidentiality, avoid discrimination and many more.
By this they able to take appropriate decision for selecting appropriate rights and code according
to situation in order to collect data and respond on it effective and efficient manner (Wilden and
Gudergan, 2015).
8
completing evaluation.
Research Strategy
It refers to a planned step by step action which provide path to researcher's idea and
thorough by which they able to conduct research in effective manner. It is essential for a
researcher because by it they able to identify issues and problems in effective manner and then
develop plans accordingly. Along with this they also able to develop and identify appropriate
concept for research, method to conduct it, aim and objective, techniques and many more. It is
also help in taking and collecting essential view and suggestions of respondents in respect of
particular innovative goods and services (Verhoef, Kannan and Inman,, 2015). There are various
research strategies which can be used by researcher in order to accomplishing and attaining
objective of particular project in effective and efficient manner. Such as case study,
questionnaire, survey and many more which can be use a researcher. For conduct this research
on the topic of “the potential effects of marketing segmentation on sales performance in the
beverage industry”, researcher use questionnaire method. Which is consider a research
instrument which include sets of questions in order to gather or collect information in effective
and efficient manner. In this method researcher develop questionnaire which is related to its
topics in order to collect appropriate information in effective manner. Then they give it to
respondent who answer all the questions in proper manner,after this researcher will evaluate and
analysis answer in respect to gain appropriate data or information.
Ethical consideration
The ethical consideration refers to a technique which is conducted by an organisation in
order to analysis as well as diagnose each and every area. By this manager of a company able to
evaluate and analysis appropriate norms and rules according to situation (Wedel and Kannan,
2016). It is one of the essential and importance section in respect of research this is so because
many professionals agencies and associates adopt various code as well as policies which create
framework of ethical behaviour and guidebook for researcher. It will various aspects such as
honesty, objectivity, social responsibilities, confidentiality, avoid discrimination and many more.
By this they able to take appropriate decision for selecting appropriate rights and code according
to situation in order to collect data and respond on it effective and efficient manner (Wilden and
Gudergan, 2015).
8
Questionnaire
Q 1) Are you aware with the concept of market segmentation?
a) Yes
b) No
Q 2) What are the key benefit of marketing segmentation?
a) Retain more customers
b) Better opportunity for business growth
c) Enhancement of profitability
Q 3) What are the major impacts of marketing segmentation on sales performance of
Starbucks?
a) Ease in access to customer
b) Improving distribution channel
Q 4) What are the various ways that can used by company to enhance sales performance?
a) Determine brand's target audience
b) Establish a brand mission statement
c) Outline key qualities and benefits brand offers
Q 5) Do you think, Starbucks is required to focus on other market for enhancing its sales?
a) Yes
b) No
Q 6) What are the different ways by which sales of Starbucks can be increased?
a) Ask for referrals
b) Use social media
c) Take regular based feedback from customers
Q 7) Which among the specified are considered by you at the time buying coffee?
a) Quality
9
Q 1) Are you aware with the concept of market segmentation?
a) Yes
b) No
Q 2) What are the key benefit of marketing segmentation?
a) Retain more customers
b) Better opportunity for business growth
c) Enhancement of profitability
Q 3) What are the major impacts of marketing segmentation on sales performance of
Starbucks?
a) Ease in access to customer
b) Improving distribution channel
Q 4) What are the various ways that can used by company to enhance sales performance?
a) Determine brand's target audience
b) Establish a brand mission statement
c) Outline key qualities and benefits brand offers
Q 5) Do you think, Starbucks is required to focus on other market for enhancing its sales?
a) Yes
b) No
Q 6) What are the different ways by which sales of Starbucks can be increased?
a) Ask for referrals
b) Use social media
c) Take regular based feedback from customers
Q 7) Which among the specified are considered by you at the time buying coffee?
a) Quality
9
b) Price
c) Taste
d) Type of coffee
Q 8) Please provide recommendation for Starbucks by which its sales performance can be
improved.
Q 1) Are you aware with the concept of market segmentation? Frequency
a) Yes 20
b) No 10
Q 2) What are the key benefit of marketing segmentation? Frequency
a) Retain more customers 10
b) Better opportunity for business growth 10
c) Enhancement of profitability 10
Q 3) What are the major impacts of marketing segmentation on sales
performance of Starbucks?
Frequency
a) Ease in access to customer 18
b) Improving distribution channel 12
Q 4) What are the various ways that can used by company to enhance
sales performance?
Frequency
a) Determine brand's target audience 18
10
c) Taste
d) Type of coffee
Q 8) Please provide recommendation for Starbucks by which its sales performance can be
improved.
Q 1) Are you aware with the concept of market segmentation? Frequency
a) Yes 20
b) No 10
Q 2) What are the key benefit of marketing segmentation? Frequency
a) Retain more customers 10
b) Better opportunity for business growth 10
c) Enhancement of profitability 10
Q 3) What are the major impacts of marketing segmentation on sales
performance of Starbucks?
Frequency
a) Ease in access to customer 18
b) Improving distribution channel 12
Q 4) What are the various ways that can used by company to enhance
sales performance?
Frequency
a) Determine brand's target audience 18
10
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b) Establish a brand mission statement 8
c) Outline key qualities and benefits brand offers 7
Q 5) Do you think, Starbucks is required to focus on other market for
enhancing its sales?
Frequency
a) Yes 22
b) No 8
Q 6) What are the different ways by which sales of Starbucks can be
increased?
Frequency
a) Ask for referrals 8
b) Use social media 13
c) Take regular based feedback from customers 9
Q 7) Which among the specified are considered by you at the time
buying coffee?
Frequency
a) Quality 8
b) Price 9
c) Taste 6
d) Type of coffee 7
11
c) Outline key qualities and benefits brand offers 7
Q 5) Do you think, Starbucks is required to focus on other market for
enhancing its sales?
Frequency
a) Yes 22
b) No 8
Q 6) What are the different ways by which sales of Starbucks can be
increased?
Frequency
a) Ask for referrals 8
b) Use social media 13
c) Take regular based feedback from customers 9
Q 7) Which among the specified are considered by you at the time
buying coffee?
Frequency
a) Quality 8
b) Price 9
c) Taste 6
d) Type of coffee 7
11
DATA ANALYSIS AND PRESENTATION
Theme 1: Concept of market segmentation
Q 1) Are you aware with the concept of market segmentation? Frequency
a) Yes 20
b) No 10
INTERPRETATION: Market Segmentation is a very important tool for marketers to
identifying their target group at market place. It is a process of dividing the potential customers
of their targeted market into different groups and segments which is based on marketing
characteristics. Along with this, it includes demographic, geographic, psycho graphic and so on.
As per the above specified chart it has been analysed that, out of 30 respondents, 20 respondents
are aware about the concept of market segmentation as. Along with this they have proper
knowledge about the market and market segmentation and they are working on marketing
department. Whereas remaining 10 respondents are not aware about market segmentation
concept because they have less knowledge about market and also they are belongs from other
department.
12
20
10
a) Yes
b) No
Theme 1: Concept of market segmentation
Q 1) Are you aware with the concept of market segmentation? Frequency
a) Yes 20
b) No 10
INTERPRETATION: Market Segmentation is a very important tool for marketers to
identifying their target group at market place. It is a process of dividing the potential customers
of their targeted market into different groups and segments which is based on marketing
characteristics. Along with this, it includes demographic, geographic, psycho graphic and so on.
As per the above specified chart it has been analysed that, out of 30 respondents, 20 respondents
are aware about the concept of market segmentation as. Along with this they have proper
knowledge about the market and market segmentation and they are working on marketing
department. Whereas remaining 10 respondents are not aware about market segmentation
concept because they have less knowledge about market and also they are belongs from other
department.
12
20
10
a) Yes
b) No
13
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Theme 2: Key benefit of marketing segmentation
Q 2) What are the key benefit of marketing segmentation? Frequency
a) Retain more customers 10
b) Better opportunity for business growth 10
c) Enhancement of profitability. 10
INTERPRETATION: Market segmentation is an important aspect as, it helps in to
divide a market into smaller groups according to the customers need and requirement. It helps a
company to minimising a risk, reduce cost, target potential customers, have better retention and
generate more profits. As per the above specified pie chart it has been analysed that, market
segmentation provides various benefits to the market. Along with this, out of 30 respondents, 10
respondents says that, the main benefit of market segmentation is to retain more customers. It
means effective market segmentation attract more customers towards their product which
increases their sales in the market. Another 10 respondents says that the main benefit of market
segmentation is to provide better opportunity for their business growth as, it makes a positive
brand image of their product and company at market place. Remaining 10 respondents says that
market segmentation benefit is enhancement of profitability. Along with this, means it is easy to
identify their customers in the market and to focuses on particular segment for attracting more
14
10
10
10
a) Retain more customers
b) Better opportunity for
business growth
c) Enhancement of
profitability.
Q 2) What are the key benefit of marketing segmentation? Frequency
a) Retain more customers 10
b) Better opportunity for business growth 10
c) Enhancement of profitability. 10
INTERPRETATION: Market segmentation is an important aspect as, it helps in to
divide a market into smaller groups according to the customers need and requirement. It helps a
company to minimising a risk, reduce cost, target potential customers, have better retention and
generate more profits. As per the above specified pie chart it has been analysed that, market
segmentation provides various benefits to the market. Along with this, out of 30 respondents, 10
respondents says that, the main benefit of market segmentation is to retain more customers. It
means effective market segmentation attract more customers towards their product which
increases their sales in the market. Another 10 respondents says that the main benefit of market
segmentation is to provide better opportunity for their business growth as, it makes a positive
brand image of their product and company at market place. Remaining 10 respondents says that
market segmentation benefit is enhancement of profitability. Along with this, means it is easy to
identify their customers in the market and to focuses on particular segment for attracting more
14
10
10
10
a) Retain more customers
b) Better opportunity for
business growth
c) Enhancement of
profitability.
customers towards it. Further with this, they increases the sales and earn more profit from market
segmentation.
15
segmentation.
15
Theme 3: Major impacts of marketing segmentation on sales performance of Starbucks
Q 3) What are the major impacts of marketing segmentation on sales
performance of Starbucks?
Frequency
a) Ease in access to customer 18
b) Improving distribution channel 12
Interpretation: Marketing segmentation plays an essential role in the sales of every
business. In context to Starbucks, it can be said that market segmentation of this company
majorly influences sales performance as through this they targets their potential customers and
also develops marketing strategy for attracting them. As per the above specified pie chart, it can
be said that 18 among 30 respondents have specified that main impact of market segmentation on
sales performance is that it makes it easier for company to access potential customers. On the
other hand, leftover 12 respondents have specified that its major impact is that it improves
distribution channel which ultimately maximises sales of company. From the overall evaluation,
it can be said that major impact is held on meeting potential customers. As a result, its easier for
Starbucks to approach its targeted customers convince them to visiting Starbucks at regular basis.
It ultimately raises its sales performance in effective manner.
16
18
12
a) Ease in access to customer
b) Improving distribution
channel
Q 3) What are the major impacts of marketing segmentation on sales
performance of Starbucks?
Frequency
a) Ease in access to customer 18
b) Improving distribution channel 12
Interpretation: Marketing segmentation plays an essential role in the sales of every
business. In context to Starbucks, it can be said that market segmentation of this company
majorly influences sales performance as through this they targets their potential customers and
also develops marketing strategy for attracting them. As per the above specified pie chart, it can
be said that 18 among 30 respondents have specified that main impact of market segmentation on
sales performance is that it makes it easier for company to access potential customers. On the
other hand, leftover 12 respondents have specified that its major impact is that it improves
distribution channel which ultimately maximises sales of company. From the overall evaluation,
it can be said that major impact is held on meeting potential customers. As a result, its easier for
Starbucks to approach its targeted customers convince them to visiting Starbucks at regular basis.
It ultimately raises its sales performance in effective manner.
16
18
12
a) Ease in access to customer
b) Improving distribution
channel
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Theme 4: Various ways that can used by company to enhance sales performance
Q 4) What are the various ways that can used by company to enhance sales
performance?
Frequency
a) Determine brand's target audience 15
b) Establish a brand mission statement 8
c) Outline key qualities and benefits brand offers 7
15
8
7
a) Determine brand's target
audience
b) Establish a brand mission
statement
c) Outline key qualities and
benefits brand offers
Interpretation: The sales performance of a company can be enhanced by way of
identification of adequate target markets and target customers for the entity, establishment of
mission statement of the brand and outlining the key benefits and qualities associated with brand.
As per the above graph, it can be interpreted that 15 out of 30 respondents consider that
identification of a target audience is the key to enhance sales because when a company
concentrates upon a particular market segment, they are able to build a loyal customer base
thereby increasing the sales. Also, 8 out of 30 respondents think that a establishment of the
mission statement of a brand assist in sales enhancement because then the management as well
as staff of company knows their long term goal. 7 out of 30 respondents think that a firm can
17
Q 4) What are the various ways that can used by company to enhance sales
performance?
Frequency
a) Determine brand's target audience 15
b) Establish a brand mission statement 8
c) Outline key qualities and benefits brand offers 7
15
8
7
a) Determine brand's target
audience
b) Establish a brand mission
statement
c) Outline key qualities and
benefits brand offers
Interpretation: The sales performance of a company can be enhanced by way of
identification of adequate target markets and target customers for the entity, establishment of
mission statement of the brand and outlining the key benefits and qualities associated with brand.
As per the above graph, it can be interpreted that 15 out of 30 respondents consider that
identification of a target audience is the key to enhance sales because when a company
concentrates upon a particular market segment, they are able to build a loyal customer base
thereby increasing the sales. Also, 8 out of 30 respondents think that a establishment of the
mission statement of a brand assist in sales enhancement because then the management as well
as staff of company knows their long term goal. 7 out of 30 respondents think that a firm can
17
enhance sales by outlining key qualities offered by brand because with this they can successfully
gain the attention of people.
Theme 5: Starbucks is required to focus on other market for enhancing its sales
Q 5) Do you think, Starbucks is required to focus on other market for
enhancing its sales?
Frequency
a) Yes 22
b) No 8
22
8
a) Yes
b) No
Interpretation: It is essential that a company considers to enter into new markets so as to
enhance its sales. As per the above mentioned graph, it can be interpreted that 22 out of 30
respondents think that Starbucks should focus upon other new markets to increase its sales as
new market tends to offer opportunities to an organisation to expand its existing share in
marketplace. Further, 8 out of 30 respondents think that organisation should not focus on other
markets as as new markets tends to pose threat to the top position of Starbucks owing to the high
level of competition prevailing in marketplaces.
Theme 6: Different ways by which sales of Starbucks can be increased
18
gain the attention of people.
Theme 5: Starbucks is required to focus on other market for enhancing its sales
Q 5) Do you think, Starbucks is required to focus on other market for
enhancing its sales?
Frequency
a) Yes 22
b) No 8
22
8
a) Yes
b) No
Interpretation: It is essential that a company considers to enter into new markets so as to
enhance its sales. As per the above mentioned graph, it can be interpreted that 22 out of 30
respondents think that Starbucks should focus upon other new markets to increase its sales as
new market tends to offer opportunities to an organisation to expand its existing share in
marketplace. Further, 8 out of 30 respondents think that organisation should not focus on other
markets as as new markets tends to pose threat to the top position of Starbucks owing to the high
level of competition prevailing in marketplaces.
Theme 6: Different ways by which sales of Starbucks can be increased
18
Q 6) What are the different ways by which sales of Starbucks can be
increased?
Frequency
a) Ask for referrals 8
b) Use social media 13
c) Take regular based feedback from customers 9
8
13
9
a) Ask for referrals
b) Use social media
c) Take regular based
feedback from customers
Interpretation: There can be a number of ways through which an organisation can
substantially enhance the sales as well as profits of an enterprise. As per the above mentioned
graph, it can be said that 8 out of 30 respondents think that company should ask for referrals to
enhance sales as this is a lucrative marketing initiative which tends to give a great boost to sales
of company. Further. 13 out of 30 pupil consider the use of social media the best way to increase
sales as being a digital era, social media is able to gain the attention of a large number of persons
at one point of time. Also, 9 respondents think that businesses should take regular feedbacks
from customers as this helps them to gain knowledge of the shortcomings of the company,
thereby working upon it to enhance sales.
Theme 7: Consideration while ordering coffee
Q 7) Which among the specified are considered by you at the time ordering Frequency
19
increased?
Frequency
a) Ask for referrals 8
b) Use social media 13
c) Take regular based feedback from customers 9
8
13
9
a) Ask for referrals
b) Use social media
c) Take regular based
feedback from customers
Interpretation: There can be a number of ways through which an organisation can
substantially enhance the sales as well as profits of an enterprise. As per the above mentioned
graph, it can be said that 8 out of 30 respondents think that company should ask for referrals to
enhance sales as this is a lucrative marketing initiative which tends to give a great boost to sales
of company. Further. 13 out of 30 pupil consider the use of social media the best way to increase
sales as being a digital era, social media is able to gain the attention of a large number of persons
at one point of time. Also, 9 respondents think that businesses should take regular feedbacks
from customers as this helps them to gain knowledge of the shortcomings of the company,
thereby working upon it to enhance sales.
Theme 7: Consideration while ordering coffee
Q 7) Which among the specified are considered by you at the time ordering Frequency
19
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coffee?
a) Quality 8
b) Price 9
c) Taste 6
d) Type of coffee 7
8
9
6
7
a) Quality
b) Price
c) Taste
d) Type of coffee
Interpretation: A number of things are taken into account by customers while ordering
coffee in a cafe. As per the above mentioned graph, it can be said that 8 out of 30 people
consider the quality of coffee while ordering as high quality means high satisfaction for
customers. Further, 9 persons think that price is the prerequisite for ordering coffee as people
order coffee as per their income levels. 6 out of 30 respondents consider taste as high prices can
be paid by customers in case the taste of coffee is good. Lastly. 7 persons think that type of
coffee is considered by people before ordering because every person has their own tastes and
preferences and order in accordance with that only.
CONCLUSION
According to the above described report, it can be analysed that market segmentation is
the process which divided target customers into different categories towards company goods and
20
a) Quality 8
b) Price 9
c) Taste 6
d) Type of coffee 7
8
9
6
7
a) Quality
b) Price
c) Taste
d) Type of coffee
Interpretation: A number of things are taken into account by customers while ordering
coffee in a cafe. As per the above mentioned graph, it can be said that 8 out of 30 people
consider the quality of coffee while ordering as high quality means high satisfaction for
customers. Further, 9 persons think that price is the prerequisite for ordering coffee as people
order coffee as per their income levels. 6 out of 30 respondents consider taste as high prices can
be paid by customers in case the taste of coffee is good. Lastly. 7 persons think that type of
coffee is considered by people before ordering because every person has their own tastes and
preferences and order in accordance with that only.
CONCLUSION
According to the above described report, it can be analysed that market segmentation is
the process which divided target customers into different categories towards company goods and
20
services. In this, consumers are one of the most essential thing at the time of operating and
regulating business operations. Marketing effect and segmentation is always a customers
oriented philosophy, this is consistently with the marketing concept. Market segmentation help
company in gaining a competitive advantages in the whole market place by analysing different
customers groups and targetting particular goods to meet with their demands. A literature review
is the search and evaluation of available literature in the given subject and topic area. Research
methodology help an investigator in order to select appropriate method of data collection which
are used for completing specific project. According to the above information, more than half of
the population are agree as market segmentation is essential for growth and success of an
organisation.
RECOMMENDATION
From the above mentioned information, it has been recommended to the organisation is
market segmentation is essential for their growth and development. Market segmentation is
essential for them in different ways like: it help an organisation to increase customer base,
maximise sales, improve brand awareness etc. There are some important suggestion to the
Starbucks which are determined as under:
Company should produce quality products and services to customers at reasonable price.
Starbucks should use different promotional channels through which they can easily
attract large number of customer's.
Company should also train their employees about how to use technology and attain long
term goals and objectives.
21
regulating business operations. Marketing effect and segmentation is always a customers
oriented philosophy, this is consistently with the marketing concept. Market segmentation help
company in gaining a competitive advantages in the whole market place by analysing different
customers groups and targetting particular goods to meet with their demands. A literature review
is the search and evaluation of available literature in the given subject and topic area. Research
methodology help an investigator in order to select appropriate method of data collection which
are used for completing specific project. According to the above information, more than half of
the population are agree as market segmentation is essential for growth and success of an
organisation.
RECOMMENDATION
From the above mentioned information, it has been recommended to the organisation is
market segmentation is essential for their growth and development. Market segmentation is
essential for them in different ways like: it help an organisation to increase customer base,
maximise sales, improve brand awareness etc. There are some important suggestion to the
Starbucks which are determined as under:
Company should produce quality products and services to customers at reasonable price.
Starbucks should use different promotional channels through which they can easily
attract large number of customer's.
Company should also train their employees about how to use technology and attain long
term goals and objectives.
21
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